Paying Off Debt While Trying To Save: How To Make It Work
Are You Keeping An Eye On Your Payments?!
Paying off debt can be one of the hardest things to do in your lifetime because it accumulates a lot faster than you can pay it down.
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It can tank your credit score, and everything to do with this negative side of finance can simply be too overwhelming to think about!
And this is especially true when you’re actively trying to save at the same time.
Trying to pad out an emergency account, or trying to save up for your first vacation in a decade, can feel next to impossible when you’ve got a student loan or credit card debt to deal with.
However, you can still navigate these choppy waters with some expert tips; we’ve listed some below for your convenience.
Think Of Your Debt Payments As A Milestone
Your debt payments are a goal; if you can always make the minimum payment, no matter what, then you’ve got some space in your finances to start saving some cash too.
Of course, it’s best to get rid of debt as fast as you can, but as long as you keep up with the lower level of repayment, you can afford to be more diverse with your money.
So think about how much you’re repaid over the past six months.
Have you always been able to reach that minimum threshold?
Have you often been able to pay back more than you were required to?
This is a very good place to be in; it’s a form of financial freedom in a time when your capital is all tied up, and any extra cash can go in the piggy bank!
Look Into Card 💳 Rewards
There are a lot of credit cards out that come ready packed with rewards to take care of.
However, there are also some debit card with rewards programs you can look into, if the cash is already in your account, it’s far less harmful to your goals to spend with it!
But above all, if you need to rely on credit from time to time, it’s best to work with a company that’ll pay it forward.
When you’ve got rewards to work with, you can get cashback on your purchases, more time to pay if need be, as well as the chance to earn discounts in the long run.
This will certainly make any credit debt accrued far less impactful, and it will also help you to feel less guilty about needing to use the card in an emergency.
Limit The Non Essentials
A quick point to finish: make sure any non essential spending is kept to a minimum.
The less cash you fork out on cinema trips or dinners out with friends, the better your chances of remaining afloat in both your debt repayment program and savings account.
Any extra money needs to go towards both these causes for the foreseeable future.
Paying off debt while trying to save takes patience.
Keep an eye on your repayments, and set some realistic savings goals.
Also Read >>> Get To Know Your Credit And Boost Your Score Today
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